Based on the information in the table, what quantity of reserves would the Federal Reserve have had to inject into the economy in 1932 to prevent the money supply from falling, given that the public increased the amount of currency it held and that banks increased the reserve-deposit ratio? Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $0.30 billion
B. $0.66 billion
C. $3.54 billion
D. $0.89 billion
Answer: B
You might also like to view...
Comparative advantage refers to the ability to produce better quality goods than a competitor.
Answer the following statement true (T) or false (F)
With a fixed amount of capital, the total amount number of computers produced by 50 workers is 5,000. The average productivity of labor is
A. 0.01. B. 5. C. 100. D. 250.
The United States abandoned the ________ because the government wanted to rapidly expand the money supply in response to the Great Depression
A) managed float B) floating exchange rate system C) Bretton Woods system D) gold standard
Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. The quota will decrease the revenue of foreign firms by
A) $0. B) $2,500. C) $7,500,000. D) $11,250,000. E) $13,125,000.